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Digitized by Kansas Correctional Industries

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This study has a twofold purpose. The first is to investigate the background and development of Japan's policy on the liberalization of international capital movements and the second is to explore the characteristics of Japanese economic nationalism. By the late 1960's Japan had succeeded in expanding her economy to the level of the economies in the European countries. Rapid increases in U.S. imports from Japan, which reflected Japanese economic expansion made U.S. enterprises realize that Japanese industry had become strong enough to decontrol foreign investment in Japan to a further extent than she had until then. But the Japanese thought that their industry was not developed enough to compete with multinational corporations because of the inherent vulnerability of Japanese enterprises and industries arising from the financial incapability of firms and excessive competition in major industries. Thus Japan has maintained a restrictive policy on foreign inward investment, with the principle that every Japanese industry should be controlled by nationals. In the course of her economic development, Japan proceeded with a five-year capital liberalization program from 1967 to 1971. Nevertheless, Japan's economic policy on foreign investment remains more restrictive than those of Western developed countries. Japanese policy is significantly affected by feelings of economic nationalism rather than considerations of economic welfare. In this paper a model of economic ethnocentrism is formulated with the purpose of explaining the characteristics of economic nationalism in Japan. Japan possesses unique social, cultural and political conditions which have lasted for a long time. These unique traditional traits of Japanese society remain influential enough that Japan's industrial organization, formal and informal, is able to be distinguished from that of Western countries. The basic attitudes of the Japanese towards foreign investment are derived from complex economic, socio-cultural and political conditions. This study attempts to synthesize several major factors which affect the Japanese attitudes which influence policies on foreign investment in Japan. / Business, Sauder School of / Graduate

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Digitized by Kansas State University Libraries

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This study examines post-war social change in a Japanese farming community. Social change is defined as changes in the three sets of rules for social behaviour in a social system. Three sets of factors affected social change in rural Japan: (1) changes in the policies and programmes of the central government, (2) changes in the national economy, and (3) the adoption by farmers of new farm techniques. The central government has aimed at the industrialization of Japanese agriculture. Through its policies and programmes the government removed or modified obstacles to economic growth and provided conditions favourable to the growth of the farm economy. The Japanese economy has grown at a rapid rate. National economic growth together with governmental policies and the farmers' incentive to increase farm output has resulted in significant changes in rural Japan. For example, these factors have increased farmers' access to economic resources, absorbed rural young people into industrial centres, motivated farmers to mechanize farm practices thereby raising production costs, and made necessary an increase in household income. Farmers have adopted new farm techniques. Despite the exodus of youth from the rural areas, as farmers mechanize their practices they developed a surplus of labour. Farmers have diversified production activities by investing the surplus labour into non-farm operations, or into farm operations when competent change-agents existed. Their adoption of new farm techniques modified the old sets of rules for social behaviour, and social change took place in rural Japan. If the present trends continue, Japanese farming communities will look very different in the future. First, present suburban communities will disappear as "farming" communities. Second, the majority of present farming households will leave farming, and only a small number of larger farmers will remain in those communities in which the residents make no deliberate efforts to differentiate their farm operations. Third, a large number of farming households will remain farming in those communities in which the residents will differentiate farm operations; these communities will be small in number, but the community I studied will be one of them. / Arts, Faculty of / Sociology, Department of / Graduate

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